FUVAAL Develops First Waste-To-Renewable Energy Project in Latin America

WaterSmart Environmental, Inc. announces the initial development of the very first waste-to -renewable energy project in Latin America. The location is the municipality of Delmacio Vélez Sársfield located in the agricultural heartland of Córdoba Province, Argentina.

WaterSmart Environmental, Inc. announces the initial development of the very first waste-torenewable energy project in Latin America. The location is the municipality of Delmacio Vélez Sársfield located in the agricultural heartland of Córdoba Province, Argentina. The city was named after Dalmacio Vélez Sársfield, an Argentine lawyer and politician who wrote the 1869 Argentine Civil Code, much of which is still in use today. The waste-to-renewable energy project will include:

• Organic Beef Production and Processing & Marketing
• Organic Pork Production and Processing & Marketing
• Organic Dairy and Cheese Products, Processing, and Marketing
• Organic Poultry Egg Production, Processing, and Marketing
• Urea Fertilizer Production and its Marketing
• Liquefied Nitrogen (LN2)(LIN) Production and its Marketing
• Biodiesel Production and its Marketing
• Compressed Natural Gas (CNG) Fuel Production and its Marketing
• Electricity Generation and its Marketing
• Municipal Solid Waste (Biomass) Processing with Two-Phase Anaerobic Digestion

The technology is being marketed on a build-own-operate basis with non-recourse project financing from renewable energy investors coupled with low interest bank loans. The business model calls for the 50:50 sharing of annual profits with each municipality that embraces this renewable energy technology. The project at Delmacio Vélez Sársfield will also include 8-10 surrounding communities. After suffering a recession in 2002, Argentina has managed to return to growth with surprising strength; GNP jumped 8.8% in 2003, 9.0% in 2004, and 9.1% in 2005 (with expectations of 8% for 2006). Consumer prices, however, have accompanied this surge, and average wages have barely caught up; though not comparable to the levels of former crises, the inflation rate was in 2005 12.5% (with expectations around 10% for 2006). It has prompted the government to "cool down" some sectors of the economy, restrict benefits for exporters, and put pressure on companies in order to stabilize prices. While unemployment was considerably reduced in 2005, Argentina has so far failed to reach a more equitable distribution of income.

FUVAAL (www.fuvaal.org) is a foundation dedicated to promoting non-profit housing for the informal sector workers and lower income groups not covered by current housing provision. At least 365 million people in Central and Latin America live in sub-standard, mostly urban dwellings. Working in areas where infrastructure is often non-existent, and in order to provide support for the potential buyers of non-profit housing, FUVAAL has extended its activities to include job creation through environmental protection and agro-industry as well as the promotion of low cost housing finance. FUVAAL is the company's Wastes-To-Renewable Energy Project Developer for Spain, Portugal, Mexico, Central & South America, and the Caribbean. FUVAAL's continuing marketplace efforts during 2006 have spawned written interest in the waste-to-renewable energy technology from some 50 communities throughout its project development territory. The 50:50 sharing of project profits is the technology feature that carries the most marketplace interest followed by the significant jobs creation potential.

WaterSmart Environmental is marketing its Kyoto Protocol compliant wastes-to-energy technology on an economic development platform to concentrated animal feeding operators and to municipalities. Animal farmers benefit by purchasing biodiesel, electricity, and natural gas (methane) at a 20% discount from retail. Municipalities also benefit by making biodiesel, electricity, natural gas, and potable water available to its citizens and businesses at a 20% discount from existing prices. The technology is marketed on a build-own-operate basis thereby eliminating the necessity for local sales and property tax increases since project financing is entirely secured from the financial marketplace. Municipalities that embrace the waste-to-energy technology automatically become zero waste-to-landfill communities. The waste-to-renewable energy technology has been slowly developed over the last 10 years. It is just now being introduced to the international marketplace. The technology has the clear potential for making every single city throughout the world energy and fuels independent while reducing oil and natural gas imports. The technology will also permit every single city throughout the world to improve water and wastewater treatment infrastructure while creating jobs and investment opportunities. The wasteto- energy technology can also be applied to Sugar Cane Mills as well as Pulp & Paper Mills with equal success. Both types of mills become energy, food, fuels, and water independent while significantly increasing profits from routine operations. In the case of Sugar Cane Mills temporary and seasonal jobs turn into full time better paying jobs. Widespread use of the technology carries with it the potential for reversing global warming.

WaterSmart Environmental, Inc. is a provider of waste-to-energy, food independence, water independence, and energy independence technologies and a manufacturer of highly engineered water purification components and systems. The company designs and builds a wide variety of water treatment equipment including packaged water and wastewater treatment plants, UltraPaqTM aerobic package plants, OATTM Process anaerobic digesters with associated energy production, aerators, filters, PuriSepTM and SmartWaterTM oil/water and solids/liquids separators, RainDrainTM perimeter trench sand filters for stormwater runoff, dissolved air flotation separators, air strippers, complete skid assembled aqueous waste treatment plants, FilterFreshTM skid mounted potable water production plants, skid mounted wastewater treatment systems for laundromats, commercial laundries, and car/truck wash facilities with water reclamation and reuse, softeners, demineralizers, activated carbon treatment equipment, and water purifiers for domestic and international markets.

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